SEC Clarifies Cryptoasset Stance, Shifts Focus from Securities

The US Securities and Exchange Commission (SEC) has taken a crucial step towards clarifying its stance on cryptoassets. In a move that marks a significant departure from previous uncertainty, the SEC has stated that most cryptoassets are not considered securities under federal law.

This new guidance defines digital assets as securities only when they offer investment contracts linked to promises of profits based on management efforts. This means that platforms offering tokens for investment in a common enterprise would be subject to securities laws.

SEC Chairman Paul Atkins emphasized the importance of this interpretation, stating that it will provide market participants with 'a clear understanding of how the Commission views cryptoassets under the federal securities laws.' The new guidance is seen as a major win for the crypto industry, which had long been uncertain about how to navigate the complex web of federal securities laws.